FAFO/1698/2011 of THE NEW INDIA ASSURANCE CO. LTD. Vs SMT. DIVYANJALI AND OTHERS on 6 May 2026

1. Heard the counsel for the appellant Insurance Company the counsel for the claimant respondents.

2. The appeal has been preferred against the award dated 15.03.2011. The cross objection have also been filed for enhancement of the compensation by the claimants.

3. As, the only issue agitated is with regard to the quantum of compensation, the same is being considered by this Court. The deceased died in a motor vehicle accident. It was claimed that the deceased was working as a Contractor with PWD and was earning Rs.9000/- per month, however the Tribunal after appreciating the evidence on record, admitted the income to be Rs.5000/- per month. No evidence could be adduced by either of the parties to suggest that the said conclusion of the Tribunal is erroneous, as such, the income of the deceased assessed at Rs.5000/- appears to be correct requiring no interference. However, the Tribunal has erred while awarding the compensation which is primarily in ignorance of law and clarified by the Hon'ble Supreme Court in the cases of Sarla Verma and others vs. Delhi Transport Corporation and another; Civil Appeal No.3483 of 2008 decided on 15.04.2009; Magma General Insurance Company Limited vs. Nanu Ram Alias Chuhru Ram and others; (2018) 18 SCC 130 and National Insurance Company Limited vs. Pranay Sethi and others; 2017

(4) TAC 673..

4. In view of the said three judgements, the quantum to which the claimants would be entitled to work as under : Sl. No. Head Compensation awarded

1. Monthly income of the deceased Rs.5,000/- per month Adding 40% towards future prospects in the light of the judgement in Pranaya

2. Rs.7,000/- per month Versus Counsel for Appellant(s) : Aditya Singh Parihar Counsel for Respondent(s) : Abhishek Kumar Yadav, Kamal Singh, Ram Singh The New India Assurance Co. Ltd. .....Appellant(s) Smt. Divyanjali And Others .....Respondent(s)

Sethi's case (supra)

3. Net yearly income Rs.84,000/-

4. Deducting 1/4th towards personal expenses Rs.84,000 x 1/4th = Rs.21,000/- After deduction : Rs.84,000 - Rs.21000 = Rs.63,000/-

5. Applying multiplier of '17' as per Rs.63,000 x 17 = Rs.10,71,000/-

6. Amount under conventional heads:

(i) loss of estate Rs.18,500/-

(ii) funeral expenses Rs.18,500/- as per Pranay Sethi's case (supra)

(iii) loss of consortium Rs.48,500/- per person (Rs.48,500 x 6) as per Magma General Insurance Company Limited (supra) Rs.18,500 + Rs.18,500 + Rs.2,91,000 = Rs.318000/-

7. Total amount of compensation (Sr.No.5 + Sr.No.6) Rs. 13,62,000/-

5. The amount as recorded above shall be paid along-with interest @ 7% per annum from the date of filing the claim petition till actual payment/realisation. The said amount shall be paid within a period of three months from today and the amount already paid as compensation shall be deducted from the aforesaid amount to be paid to the claimant.

6. The amounts deposited before this court shall be transmitted to the Tribunal for being paid to the claimants in terms of the directions issued. May 7, 2026 VNP/- FAFO No. 1698 of 2011 2 (Pankaj Bhatia,J.) Digitally signed by :- VISHVANATH PRASAD SHUKLA High Court of Judicature at Allahabad